Air India pilots have reached out to the government to reverse pay cuts that were first introduced last year. Two unions representing the pilots wrote to the Ministry of Civil Aviation highlighting how pilots have seen pay cuts of 55% since October. Compared to other Indian airlines, Air India’s salary cuts are double, mostly due to the reduction of allowances.
Pay cuts
According to The Hindu, both the Indian Commercial Pilots Association (ICPA) and Indian Pilots Guild (IPG) have reached out to the Ministry of Civil Aviation and Air India’s MD to reverse the one-year-old pay cuts. The letter details the high pay cut pilots have taken since the crisis began, with pay down 58% since April and 55% since October last year.
Unlike other employees, Air India pilots are paid with a combination of base salaries and allowances. Allowances make up 60% to 70% of salary for pilots at the airline, which means the huge cuts have particularly hurt pilots. Moreover, the base number of hours flown has been replaced with actual hours flown, which might be lower due to current capacity.
Changes have also been made to the international layover allowance, a key part of compensation for international-flying pilots. Instead of the standard $200 for 36 hours and $6 per hour afterwards, pilots will now be paid under government guidelines (which vary by country). These cuts could last longer than the pandemic, raising fears among pilots.
Competition doing better
Airlines around the world have cut salaries and made employees redundant due to the crisis, making Air India no different. However, compared to other airlines in India, Air India’s pilot salary cuts are drastically higher. The ICPA letter notes that currently pay at IndiGo was down just 28%, AirAsia 20%, and Vistara 17%. The only airline still paying its pilots by hours flown is SpiceJet, a practice since last year.
Considering these figures, Air India’s cut of 55% is double of the closest competitors. Moreover, the flag carrier is the only one currently flying a robust international and long-haul schedule. With repatriation flights still around, many pilots continue to work regular hours under hazardous conditions.
The letter comes soon after Air India canceled all pilot leave earlier this month. The airline has reportedly also done away with pre-flight crew testing, raising health concerns for passengers and crew.
Both unions are demanding that salaries be restored, and IPG goes further with a request to roll back cuts with retrospective effect from January 1st, 2021. It’s unclear if the government has responded to these letters or plans to increase wages.
The situation
As pilots see deep pay cuts, Air India continues to burn through cash. Civil Aviation Minister Hardeep Singh Puri confirmed last week that the flag carrier is losing ₹20 crores ($2.76 million) every day, with debt continuing to grow. The government is also unwilling to further back the loss-making airline, looking towards privatization instead.
For now, it’s unlikely that pilots will see their salaries restored any time soon. However, once the privatization process is complete, the situation could look very different.
What do you think about Air India’s pilot pay cuts? Should airlines make severe pay cuts or furlough staff instead? Let us know your thoughts in the comments.
